Can Foreigners Buy Property in Malaysia? Rules, Minimum Prices and Costs

Yes. A foreigner can buy a home in Malaysia, but only after the State Authority (the state government) approves it. States set their own minimum prices, and the federal guideline lists RM1,000,000 a unit as the floor.

The rule is section 433B of the National Land Code. A “non-citizen” (a person who is not a citizen of Malaysia) or a foreign company may buy land “only after the prior approval of the State Authority has been obtained upon an application in writing”. Under section 433C, a deal made against this rule is null and void (it has no legal effect).

The federal floor and the state lists

The Ministry of Economy’s property guideline, in force from 13 July 2022, says foreign interests may not buy property worth less than RM1,000,000 a unit. The same guideline says a foreign purchase of a home worth RM1,000,000 or more does not need the ministry’s approval; it falls under the State Authority instead.

States publish their own figures. These are the ones we found:

State	Minimum price for a home
Kuala Lumpur	RM1,000,000
Selangor: Petaling, Gombak, Hulu Langat, Sepang, Klang, Kuala Selangor, Kuala Langat	RM2,000,000 (strata or landed strata title only)
Selangor: Hulu Selangor, Sabak Bernam	RM1,000,000 (strata or landed strata title only)
Penang island	Strata RM1,000,000; landed RM3,000,000
Penang mainland (Seberang Perai)	Strata RM500,000; landed RM1,000,000
Johor	RM1,000,000
Melaka	Strata over RM500,000; landed over RM1,000,000

The Kuala Lumpur and Selangor figures come from a Malaysian Bar table dated October 2024, because the official pages were not reachable when we checked. The Bar’s own note says the table “should not be considered accurate, comprehensive or authoritative” and that you should check with the state. Selangor’s row says landed homes on their own individual title are not allowed.

Penang’s mainland strata figure is for foreign citizens; a foreign company pays from RM1,000,000. Penang also lists RM500,000 for holders of MM2H, a long-stay visa (see below), for homes only and at most 2 units. It lists RM250,000 for permanent residents.

Some states list figures below the federal RM1,000,000. Ask your lawyer which figure the state will apply to your unit before you pay any money.

What foreigners cannot buy

The federal guideline says foreign interests may not buy:

• property worth less than RM1,000,000 a unit;
• homes in the low-cost and low-medium-cost groups, as set by the State Authority;
• property on Malay reserve land (Tanah Rizab Melayu);
• property set aside for Bumiputera buyers in a development project, as set by the State Authority.

States add their own items. Penang says foreign citizens and permanent residents may not own low-cost, low-medium-cost or medium-cost homes. Johor and Melaka both bar single-storey and one-and-a-half-storey terrace houses, and both bar land sold by court order or public auction. Melaka also bars property in its heritage zone.

What it costs on top of the price

State fees differ a lot. Two examples from the state land offices:

• Penang charges an application fee of RM10,000 per title for a foreign individual buying a home. If approved, the levy (the state’s approval fee) is 3% of the price. A strata home on the island priced from RM1 million to RM1.5 million pays 1.5% instead. The levy is due within 30 days of the approval letter, and an approval left unpaid for a year is cancelled.
• Melaka charges a RM5,000 processing fee, then an approval fee of 3% of the price, at least RM30,000. Neither is refunded.

Stamp duty on the transfer is a flat 8% for a foreign buyer of a home from 1 January 2026, and 4% for other property. These rates are for buyers who are neither citizens nor permanent residents. Our stamp duty guide has the full rules.

Getting a loan

Bank Negara Malaysia lets a non-resident borrow ringgit, in any amount, from a resident to buy immovable property (land and buildings), except to buy land only. We found no Bank Negara figure for how much of the price a bank may lend a foreign buyer, so ask the bank early. Our DSR guide explains how banks check what you can repay.

Selling later

Real property gains tax (tax on your profit when you sell) for a seller who is not a citizen and not a permanent resident is 30% in the first five years and 10% from the sixth year. When you sell, your buyer must hold back 7% of the price, or all the cash paid if that is lower, and pay it to LHDN (Malaysia’s tax office) within 60 days.

Some states also limit resale. Melaka does not allow a transfer or lease for five years from the date your title is registered.

If you join MM2H

MM2H (Malaysia My Second Home) is a long-stay visa programme with its own home rules. Each tier must buy a home after approval: Silver from RM600,000, Gold from RM1 million and Platinum from RM2 million. You may not sell it for 10 years, though you may upgrade to a home of higher value. Breaking these terms gets the MM2H pass revoked. The MM2H pages do not say these figures replace a state’s own minimum price.

What to check before you buy

• Which state is the unit in, and what is that state’s current minimum for your home type?
• Is the unit low-cost, low-medium-cost or set aside for Bumiputera buyers? Then you cannot buy it.
• Is the land Malay reserve land? Then you cannot buy it.
• What are the state’s application fee and levy, and when are they due?
• Have you budgeted 8% stamp duty on the transfer (4% for non-residential property)?
• Will a bank lend to you, and how much?
• Does the state limit when you can sell?
• Is your lawyer handling the state approval? Penang and Melaka say the application must go through a lawyer.

This is a general guide, not legal or financial advice, and state rules and fees can change. Check the current figures with your lawyer and the state land office before you sign.